Snowflake AI-Fueled Earnings Beat Lifts Software Stocks

Snowflake Inc. reported strong quarterly earnings and raised its full-year outlook on September 3, 2026, driven by robust demand for its cloud data platform and artificial intelligence products. The results sparked a broad rally in software stocks, with Snowflake's own shares surging more than 23% in after-hours trading.

The cloud data company announced financial results for its fiscal second quarter, which ended July 31. Product revenue reached $1.49 billion, a 37% increase from the same period last year. Total revenue was $1.55 billion, up 35% year-over-year and exceeding analyst expectations. Adjusted earnings per share came in at 62 cents, well above the 45 cents forecast.

CEO Sridhar Ramaswamy attributed the performance to a "once-in-a-lifetime technology shift" where AI initiatives are driving new workloads across Snowflake's core platform. He described a "compounding flywheel effect" where customer AI projects increase overall platform consumption. The company's AI products, particularly the CoCo coding agent and CoWork work agent, saw significant adoption. CoCo now serves more than 9,100 customer accounts after adding over 2,000 net new accounts in the quarter, while...